5 Essential Checks For The First-Time Home Buyer

Buying a home is one of the toughest investment decisions one makes in a lifetime. However, we all take the plunge --- well, almost----- as the gains involved are too good to resist. However, chances of first-time buyers falling into traps are quite high, turning the whole thing into a sour deal. Here are some tips to ensure you make a healthy investment.

Rate research
As money is of prime concern, you have to do your research on the prevailing prices in a particular locality before buying a property. You can easily do this by employing the services of three to four brokers. Remember that a fine knowledge of an area helps you negotiate better. Also note that property purchase is all about over-the-table negotiations, as real estate is a buyer's market.
Also, there are many other charges that builders levy on buyers, citing the amenities they offer. Some of these could be parking, stilt parking, society registration and maintenance. For these, you have to pay in advance. Get all these elements in order while negotiating the deal.

The hidden charges
As the competition in the realty sector reaches crucial levels each day, builders bring in fancy amenities (ampitheatres and sauna rooms to name a few) into their project to stay ahead. Fancy as they may look, there facilities come at a cost. So, you need to compare the cost with the advantage. Make sure you check on the cost of amenities such as modular kitchens, CCTV cameras, WiFi and compare these with the extra charges the builder is taking. One has to ensure these facilities do not add value to the principal cost.
Remember that a good building is not determined by fancy amenities but the quality of fittings, electrical and plumbing. Check these thoroughly and ensure you include these in your costs, if they are bad enough to be replaced.

Location is the key
With not much space left inside cities, most new developments are forced to head out to suburbs. Most of the times, property prices in such areas rise only because developers are turning these new developments into hubs. However, not all of these are going to turn into profitable investments in future. Also, many new areas do not come under city municipalities but belong to village talukas; this means you will have to go to gram panchayats for all official purposes, including mutation and others. Properties falling under the ambit of villages have limitations with water and electricity supplies. It will be tough to sell such properties in future.

Check out the connectivity
Builders' brochures are embellished versions of brick, mortar and dust. Visit the construction site many times, employing as much public transportation as possible, before you zero in on a project. Chuck the project, if the prospects of good connectivity reaching the area are few. The lack of good roads or bus service or train service could prove a major irritant in future. By investing in such properties, one is sure to reach at a dead end. 

Registering a home
The registration process of a residential property can be very intimidating to a first-time buyer. Apart from being confusing, the process also involves an enormous variety of identification and document checks. However, going through this process is a must to ensure you have invested in a legally-binding deal, with all necessary entitlements.
Make sure you collect all that is necessary -- a deed conveyance, an occupation certificate, a transfer of electricity and water meter in your name, for example. In many cases, builders fail to transfer these till the very end, resulting in delays. Ensure all these are in place before the registration process begins.

Getting the possession
The toughest challenge of investing in an under construction property is the possession date. Give yourself and the builder a much longer deadline than promised, if you have plans to shift immediately. Plan your home loans and EMIs (easy monthly instalments) with a patient possession date; you may have to wait at least six months or a year longer than promised.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)